#SouthKoreaCryptoPolicy South Korea maintains a "strict but supportive" stance on cryptocurrency, balancing innovation with investor protection. Key aspects include:

* Regulation: The FSC and FIU are primary regulators. Cryptocurrencies are legal, but all Virtual Asset Service Providers (VASPs) like exchanges must be licensed and comply with strict Anti-Money Laundering (AML) and Know Your Customer (KYC) rules.

* Real-Name Accounts: A cornerstone policy is the mandatory use of real-name bank accounts for crypto trading to enhance transparency and combat illicit activities.

* VASP Requirements: VASPs must obtain information security certifications (ISMS), adhere to "Travel Rule" for large transfers, and face restrictions on how they use user fees.

* Evolving Policies: Recent shifts include a presidential pledge to support crypto growth, review of spot crypto ETFs, a focus on stablecoin regulation, and a phased plan for corporate crypto trading.

* Taxation: A 20% capital gains tax on crypto profits is currently postponed until 2027.

* User Protection: The Virtual Asset User Protection Act (effective July 2024) aims to safeguard traders from unfair practices.

Overall, South Korea seeks to create a regulated yet innovative environment for its significant crypto market, moving towards greater institutional involvement and a more structured digital asset landscape.